Registration

SOR/2008-105 April 4, 2008

CANADA DEPOSIT INSURANCE CORPORATION ACT

By-law Amending Certain Exemption from Deposit Insurance By-laws Made Under the Canada Deposit Insurance Corporation Act

The Board of Directors of the Canada Deposit Insurance Corporation, pursuant to paragraph 11(2)(g) (see footnote a), subsections 26.01(3) (see footnote b) and (4) (see footnote c), paragraphs 26.03(1)(c) (see footnote d) and (e) (see footnote e) and subsection 26.03(2) (see footnote f) of the Canada Deposit Insurance Corporation Act, hereby makes the annexed By-law Amending Certain Exemption from Deposit Insurance By-laws Made Under the Canada Deposit Insurance Corporation Act.

Ottawa, March 5, 2008

The Minister of Finance, pursuant to section 26.05 (voir référence g) of the Canada Deposit Insurance Corporation Act, hereby approves, to the extent that it amends the Exemption from Deposit Insurance By-law (Exemption Fee), the annexed By-law Amending Certain Exemption from Deposit Insurance By-laws Made Under the Canada Deposit Insurance Corporation Act, made by the Board of Directors of the Canada Deposit Insurance Corporation.

Ottawa, March 31, 2008

JAMES M. FLAHERTY
Minister of Finance

BY-LAW AMENDING CERTAIN EXEMPTION FROM DEPOSIT INSURANCE BY-LAWS MADE UNDER THE CANADA DEPOSIT INSURANCE CORPORATION ACT

AMENDMENTS

1. The following provisions are amended by replacing the word “bank” with the words “federal member institution” wherever it occurs:

(a) the definition “applicant” in section 1 of the Exemption from Deposit Insurance By-law (Notice to Depositors) (see footnote 1) ;

(b) section 1 of the Exemption from Deposit Insurance By-law (Exemption Fee) (see footnote 2) ;

(c) section 1 of the Exemption from Deposit Insurance By-law (Foreign Currency Deposits) (see footnote 3) ; and

(d) in the Exemption from Deposit Insurance By-Law (Prescribed Deposits) (see footnote 4)

(i) the definition “first deposit transaction” in section 1,

(ii) the portion of section 2 before paragraph (a),

(iii) the portion of paragraph 2(h) before subparagraph (i), and

(iv) subparagraph 2(h)(iii).

COMING INTO FORCE

2. This By-law comes into force on the day on which section 410 of An Act to amend the law governing financial institutions and to provide for related and consequential matters, chapter 6 of the Statutes of Canada, 2007, comes into force, but if it is registered after that day, it comes into force on the day on which it is registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the By-law.)

Description

On March 5, 2008, the Board of Directors of the Canada Deposit Insurance Corporation (“CDIC”) made the By-law Amending Certain Exemption from Deposit Insurance By-laws Made under the Canada Deposit Insurance Corporation Act (“Amending By-law”) pursuant to paragraph 11(2)(g), subsections 26.01(3) and (4), paragraphs 26.03(1)(c) and (e) and subsection 26.03(2) of the Canada Deposit Insurance Corporation Act (“CDIC Act”). Paragraph 11(2)(g) of the CDIC Act authorizes the CDIC Board of Directors to make by-laws “prescribing anything that, by virtue of any provision of this Act, is to be prescribed by the by-laws.” Subsections 26.01(3) and (4) permit the Board to make by-laws prescribing certain deposits that can be accepted without being a member of CDIC and the terms and conditions with respect to the acceptance of those deposits. Paragraphs 26.03(1)(c) and (e) require that rules related to informing depositors or relating to the fee charged by CDIC must be prescribed by by-law. Subsection 26.03(2) requires that the rate of exchange to be applied shall be determined in accordance with rules prescribed by the by-laws. The Amending By-law amends each of the following by-laws (collectively referred to as the “Exemption from Deposit Insurance By-laws”):

• Exemption from Deposit Insurance By-law (Notice to Depositors) SOR/99-381
• Exemption from Deposit Insurance By-law (Exemption Fee) SOR/99-382
• Exemption from Deposit Insurance By-law (Foreign Currency Deposits) SOR/99-384
• Exemption from Deposit Insurance By-law (Prescribed Deposits) SOR/2000-42.

Sections 409 to 413 of An Act to amend the law governing financial institutions and to provide for related and consequential matters (see footnote 5) (Amending Act) amend section 26.02, paragraphs 26.03(1)(b) to (e), subsections 26.04(1) and (3) and section 26.06 of the CDIC Act. As a consequence of the amendments, all federal member institutions, not only banks, that meet the criteria are entitled to accept deposits without being a member of CDIC. In the circumstances, all references to “bank” in the Exemption from Deposit Insurance By-laws must be changed to “federal financial institution.”

The Amending By-law changes the word “bank” to “federal financial institution” in all places it occurs in the Exemption from Deposit Insurance By-laws.

Alternatives

There are no available alternatives. The Exemption from Deposit Insurance By-laws must be amended to reflect the amendments to the CDIC Act.

Benefits and costs

The Amending By-law will align the Exemption from Deposit Insurance By-laws with the current CDIC Act. No additional costs should be attributed directly to these changes.

Consultation

As the changes are statutorily driven and technical in nature, only consultation through pre-publication in the Canada Gazette, Part I is necessary. Pre-publication took place on June 15, 2007. No comments were received during the 30-day comment period.

Compliance and enforcement

There are no compliance or enforcement issues.

Contact

Sandra Chisholm
Director, Insurance
Canada Deposit Insurance Corporation
50 O’Connor Street, 17th Floor
Ottawa, Ontario
K1P 5W5
Telephone: 613-943-1976
Fax: 613-992-8219
Email: schisholm@cdic.ca

Footnote a
R.S., c. 18 (3rd Supp.), s. 51

Footnote b
S.C. 1999, c. 28, s. 101

Footnote c
S.C. 1999, c. 28, s. 101

Footnote d
S.C. 2007, c. 6, s. 411

Footnote e
S.C. 2007, c. 6, s. 411

Footnote f
S.C. 1997, c. 15, s. 114

Footnote g
S.C. 1997, c. 15, s. 114

Footnote 1
SOR/99-381

Footnote 2
SOR/99-382

Footnote 3
SOR/99-384

Footnote 4
SOR/2000-42

Footnote 5
Chapter 6, Statutes of Canada, 2007 (Bill 37)

NOTICE:
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